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Levels of products and services

In previous blog posts, we have discussed the definition and classification of products and services. In this article, we continue to analyze the levels of products and services in Marketing.

Levels of products and services

There are three levels of products and services in Marketing: Core customer value, Actual product, and Augmented product. You can easily memorize those levels by looking at the below diagram:

Levels of products & services

1. Core customer value

Core values

The core customer value level contains the basic values, the pure benefits that each product/service brings to satisfy a certain need of the customer. The core customer value is different from other elements of marketing in that it is not something visible to consumers, but instead denotes something abstract and intangible.

Examples:

  • The core value of a house is a place where people can live every day.
  • The core value of a car is its ability to transport people and belongings from one location to another.
  • The core value of a phone is to help the user connect to another person through the phone signal.

2. Actual product

Actual product

A product/service with only core values ​​cannot be brought to the market. Therefore, it must has the actual product level. The actual product level consists of basic elements combined with core values ​​to create a finished product that can be commercialized. Those elements include:

Quality: Quality is the main factor that shows the value of a product when compared to competitors' products of the same type. Some products to be able to be put on the market need to meet certain standards of quality. Quality for products can be: durability, stability, safety, performance, experience when using...

Features: Features are an important factor besides quality to increase the competitiveness of products and services. For example, the antibacterial feature in the mask, the face recognition camera feature in the smartphone, the waterproof feature of the wall paint...

Trademark: Trademark is one of the basic identifying characteristics of a product/service in the market. The elements that make up a brand include: Name, logo and slogan.

Design & packaging: For products, design will include constituent materials, shapes, colors, weight, volume, packaging... As for services, design means about service implementation process, how businesses bring good experiences to consumers during the service process.

3. Augmented product

Augmented product

To increase the competitiveness of products and services, businesses can add the augmented level to their products/services. The level consists of:

Brand value: Includes all the reviews and opinions of customers who have experienced, or know about products/services/businesses. For example, Apple's brand value is luxury, class, professionalism...

Support services: Consulting, delivery & installation, training, warranty, after-sale services...

Conclusion

The goal of marketing is to increase the sales and raise a company's profits. The three levels of products and services in Marketing are useful tools for businesses to use when looking at how they can improve their products/services on either one or all three levels.

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